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Shining a light on PE ownership.

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KI

Kindred Healthcare

healthcare
PE-OWNED

Post-acute care provider operating hospitals, nursing centers, and home health services.

PE-OWNED

Acquired by TPG Capital2018-01-02

View PE Firm Profile

What Made It Great

“

Integrated post-acute care platform serving complex patient populations

What PE Will Likely Do

Predictions

Staffing cuts leading to fewer registered nurses (RNs) and more licensed practical nurses (LPNs) or nurse aides providing patient care

HIGH LIKELIHOODBased on: TPG Capital's track record of cost-cutting and debt-loading tactics in previous healthcare acquisitions

Sale-leaseback of hospital real estate, extracting equity and potentially leading to higher rents and costs passed on to patients

HIGH LIKELIHOODBased on: The high frequency of staffing reductions, real estate sale-leasebacks, billing upcoding, and service line cuts in the healthcare industry PE playbook

Aggressive billing and coding practices to maximize reimbursements, potentially leading to overcharging for procedures and services

HIGH LIKELIHOODBased on: The specific details on Kindred Healthcare's business model as an integrated post-acute care provider serving complex patient populations

Elimination of less profitable but essential services like psychiatric care, rural care, and maternal care at Kindred Healthcare facilities

HIGH LIKELIHOODBased on: The specific details on Kindred Healthcare's business model as an integrated post-acute care provider serving complex patient populations

Increased management and consulting fees charged to Kindred Healthcare, reducing resources available for direct patient care

HIGH LIKELIHOODBased on: The specific details on Kindred Healthcare's business model as an integrated post-acute care provider serving complex patient populations

Expected Timeline

Phases
0-6 monthsCompleted

“0 to 6 months months”

Announcements of 'efficiency' programs and leadership changes at Kindred Healthcare

6-12 monthsYOU ARE HERE

“6 to 12 months months”

Staffing reductions begin, with fewer RNs and more LPNs and aides providing patient care

12-24 months

“12 to 24 months months”

Patients experience longer wait times, reduced access to specialized services, and declines in overall care quality

24-36 months

“24 to 36 months months”

Major service closures, quality scandals, and potential financial troubles emerge at Kindred Healthcare facilities

36+ months

“36+ months months”

Likelihood of bankruptcy, hospital closures, or Kindred Healthcare being sold to another operator at a distressed price

Similar Cases

Other companies that followed a similar path after PE acquisition

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Cerberus Capital Management·2010

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Hahnemann University Hospital

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Sound Physicians

Summit Partners·2019

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What You Can Do

Take Action

Actions

  • Monitor for any changes in the quality of care, staffing levels, and availability of services at Kindred Healthcare facilities

  • Be aware of potential billing issues and advocate for transparent and appropriate coding practices

  • Engage with local community groups and patient advocacy organizations to stay informed and mobilize against any detrimental changes

Alternatives

Non-profit health systemsSAFE

Community-focused healthcare

Kaiser PermanenteSAFE

Integrated managed care consortium

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"Kindred Healthcare is now PE-owned. Here's what that means for you."